RISING PROPERTY PRICES are not a cause for concern, Minister for Finance Michael Noonan has said.
While stressing that Ireland has to be careful, he dismissed making any “dramatic intervention” into the speed of the economy’s growth, saying that it must be ‘built up’ first.
Arriving this morning at a meeting of Eurozone finance ministers, Minister Noonan told reporters that “there is no need for concern yet” with the housing market, as the rise in prices so far has been comparably small.
When you think that property crisis dropped almost 55%, the increase that is there in 2013 is quite small in proportion to the massive drop.
He supported recent moves by banks to introduce incentives for people to buy property, saying he hoped it would lead to a stabilisation of the housing market.
House prices in Dublin continue to rise, with the latest figures showing a 7.6 per cent rise in the third quarter of this year compared to last.
The number of rental properties available on the market is down by over 5,000.
“An important day of Ireland”
The Minister is in Brussels ahead of two days of Eurogroup meetings, with the twelfth and final review Ireland’s bailout programme on the agenda today.
In a statement, they congratulated Ireland “for the steadfast implementation of the programme that is allowing Ireland to return to a path of balanced growth and job creation and to stand on its own feet again.
The imminent completion of the Irish programme is a proof that our strategy is now delivering results. Tribute was paid to the hard work of the Irish people and to the determination with which reforms have been pursued.
Minister Noonan was positive about this review, citing “very strong” revenue and employment figures and that Ireland is currently on track to go beyond its deficit target for 2013.
The finance ministers were also facing tough talks on the next key step to a ‘Banking Union,’ the new regulatory system to ensure banks avoid the risky excesses which brought Europe to its knees.
Noonan said he hoped for an agreement on how to proceed by tomorrow evening, but warned that another meeting may be needed before Christmas.
(Youtube: TheJournal.ie)
Additional reporting, Daragh Brophy
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